AN ACT relating to contracts.

Create a new section of KRS Chapter 336 to define "covenant not to compete" and "covered employee"; provide that an employer shall not require a covered employee to enter into a covenant not to compete; set forth civil remedy, damages that can be recovered, and limitations to bring claim; provide that the provisions must be posted by the employer; indicate that an employer shall not retaliate against an employee for bringing a civil action; establish application of provisions; amend KRS 336.990 to provide civil penalties.

Introduced: February 19, 2025

Last action: February 26, 2025

To Economic Development & Workforce Investment (H)

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This bill would ban employers from requiring certain workers to sign non-compete agreements, which are contracts that restrict where or for whom an employee can work after leaving a job. It sets out rules for what counts as a covered employee, what damages a worker can seek if an employer violates the law, and protections against retaliation for workers who take legal action. Employers would also be required to post notice of these rules in the workplace. Who it may affect: employees and employers, particularly workers who may currently be asked to sign non-compete agreements as a condition of employment.

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